Interim Resource Estimate for the West Bear Deposit Adds 223,000 Pounds of U(3)O(8) Outlining an

UEX Interim Resource Estimate for the West Bear Deposit Adds 223,000 Pounds of U(3)O(8) Outlining an Indicated Resource of 73,800 Tonnes, Grading 1.004% U(3)O(8) and Totaling 1.614 Million Pounds of U(3)O(8) - Final Resource Estimate to be Completed in 2008

Trading Symbol: UEX-TSX
VANCOUVER, Dec. 13 /CNW/ - UEX Corporation ("UEX") is pleased to announce
that it has received an interim resource estimate report from Golder
Associates Ltd. ("Golder") of Saskatoon, SK, for UEX's West Bear Uranium
Deposit ("West Bear"). West Bear is located within the southern block of UEX's
100%-owned Hidden Bay Project in the eastern Athabasca Basin area of northern
Saskatchewan, Canada. The new resource estimate is 73,800 tonnes grading
1.004% U(3)O(8) containing 1.614 million pounds of U(3)O(8) using a cut-off
grade of 0.15% U(3)O(8) and is based on both UEX's 2005 and 2007 sonic
drilling programs and incorporates only the high-grade main deposit area,
where mineralization occurs at a vertical depth of between 10 and 31 metres
from surface. This new estimate shows an increase of 223,000 pounds of
U(3)O(8) representing a 16.0% increase in total pounds of U(3)O(8) from the
2005 Cameco Corporation ("Cameco") National Instrument 43-101 ("N.I. 43-101")
compliant indicated resource estimate.
Due to incomplete geochemical data from the eastern area of West Bear,
this resource estimate does not utilize data from the eastern deposit area
where sonic drilling in 2007 extended uranium mineralization 150 metres beyond
the current boundaries of the deposit, as well as a secondary lens of
mineralization discovered in the southern section of the eastern deposit area
over a strike length of 75 metres.
"The increase of 223,000 pounds of U(3)O(8) at West Bear is very
significant given the shallow nature of the deposit, and we expect to add more
pounds once we receive the full uranium assay results for this resource, which
we expect in 2008," said Stephen Sorensen President and CEO of UEX.
"Turn around times for geochemical assay results are taking three to four
months where previously four to six weeks was the norm. As a result, UEX
decided that Horseshoe and Raven samples should take priority over West Bear
samples due to the significantly larger size of these deposits compared to
West Bear. We are doing the best we can to accelerate N.I. 43-101 compliant
resource estimates on Raven and Horseshoe as well as West Bear."
Sorensen went on to say that "discussions regarding the West Bear Deposit
are ongoing with AREVA and Cameco. UEX is considering a few options which
include a toll milling arrangement with one of the operators or an out right
sale of the deposit. Either way, West Bear represents a potentially
significant source of future cash flow for UEX that could be used to finance
the development of its major deposits at Shea Creek and Raven-Horseshoe."
2007 West Bear Interim Resource Estimate Report
A 2005 N.I. 43-101 compliant indicated resource estimate prepared by
Roger Lemaitre, P.Eng., P.Geo. of Cameco, which was based only on UEX's 2005
sonic drilling program, outlined an indicated resource of 45,600 tonnes,
grading 1.385% U(3)O(8) and totaling 1.391 million pounds U(3)O(8) at West
Bear using a cut off grade of 0.15% U(3)O(8). The West Bear resource estimate
technical report dated March 2, 2006 is available for review at www.sedar.com
UEX's 2007 winter sonic drilling program (see UEX News Release, July 23,
2007) included additional infill holes spaced at 5 metre intervals on two
sections (1762.5E and 1787.5E) in the high-grade core of the main deposit area
between sections 1750E, 1775E and 1800E drilled by Cameco in 2005. These holes
were designed to better define the deposit geometry and uranium grades in this
main deposit area. Uranium grades in this high-grade core area were increased,
and include intercepts of 6.032% U(3)O(8) over 10.67 metres in hole UEX-206
(see Section 1762.5E on UEX's website under West Bear) and 2.341% U(3)O(8)
over 7.08 metres in hole UEX-197 (see Section 1787.5E on UEX's website under
West Bear).
The new interim resource estimate calculated by Kevin Palmer, P.Geo. of
Golder of Burnaby, BC dated December 11, 2007 incorporating the results from
both the 2005 and 2007 winter sonic drilling programs, outlined an indicated
resource of 73,800 tonnes, grading 1.004% U(3)O(8) and totaling 1.614 million
pounds of U(3)O(8) at West Bear in the high-grade main deposit area. The
resource estimate was calculated using a cut-off grade of 0.15% U(3)O(8)
utilizing a geostatistical-block model technique with ordinary kriging methods
and the DATAMINE Studio 3 software package.
2007 Summer Sampling Program
The 2005 West Bear resource estimate report by Cameco notes that only
two-thirds of the strike length of the mineralized area included as part of an
historical resource outlined by Gulf Minerals ("Gulf") was tested during the
2005 sonic drilling program. A number of historical Gulf holes indicated that
uranium mineralization likely extends to the east up to 150 metres beyond the
current boundaries of the deposit.
One of the goals of the 2007 winter sonic drilling program was to test
the eastern deposit area for uranium mineralization not previously drilled.
The 2007 program extended the uranium mineralization 150 metres east of the
boundary outlined during the 2005 sonic drilling program on drill fences
spaced 25 metres apart with holes spaced at 5 metre intervals. This new
uranium mineralization forms a narrow continuous lens straddling the
unconformity in the northern section of the eastern deposit area. This
mineralization includes intercepts of 0.360% U(3)O(8) over 2.0 metres in hole
UEX-116 (see Section 2075E on UEX's website under West Bear) and 0.670%
U(3)O(8) over 3.05 metres in hole UEX-120 (see Section 2025E on UEX's website
under West Bear).
A small secondary lens of uranium mineralization not previously
identified by Gulf Minerals was also discovered in the southern section of the
eastern deposit area. This southern lens of mineralization extends over a
strike length of over 75 metres and includes an intercept of 0.421% U(3)O(8)
over 2.55 metres in hole UEX-172 (see Section 2025E on UEX's website under
West Bear).
In order to create a final resource calculation for the full 500 metre
strike length of the deposit based on a lower cut-off, additional sampling was
required to sample material not previously sampled during the 2005 and 2007
winter sonic programs. This additional sampling was carried out in the summer
of 2007. Sample analyses from these samples are currently pending. Once all
assays are received and fully interpreted, a final resource estimate will be
carried out by Golder which will incorporate the entire deposit, including the
eastern deposit area and the high-grade main deposit area reported here.
Golder's final resource estimate is expected to be delivered to UEX during
2008.
Metallurgical Testing
Melis Engineering Ltd. of Saskatoon, SK is currently overseeing a
confirmation metallurgical testing program using representative composites
derived from fresh drill core samples collected from the 2007 sonic drilling
program. The composites are currently being processed at SGS Lakefield
Research Ltd. of Lakefield, ON to confirm leach and effluent treatment
conditions on fresh samples of core.
West Bear Environmental Baseline and Feasibility Studies
Golder is carrying out an environmental baseline study ("EBS") and a
feasibility study for West Bear. The EBS has been underway at West Bear since
August 2005 and Golder continues to collect biological, hydrogeological and
other environmental data. Further baseline studies are scheduled for 2008
following the input of more detailed information on the project design
generated from the West Bear feasibility study.
UEX looks forward to the completion of the feasibility study, which is
expected to be delivered in 2008, following Golder's integration of the
results from UEX's 2007 sonic drilling program. The feasibility study will
examine the most efficient methods and procedures for extracting the defined
uranium resource, including the most appropriate road access and support
infrastructure, mining methods and operating plans. Golder is currently
carrying out mine, open pit slope, and waste dump design work. As the
feasibility study progresses, Golder will supervise the tendering of contracts
for all aspects of a potential mining operation, and will perform cash flow
analyses and projections in order to determine net present values and internal
rates of return for West Bear at various uranium price levels.
Golder and UEX have created a Strategic Planning Group, consisting of key
representatives from both companies, in order to commence the permitting
process for West Bear in 2008. Following receipt of the final EBS report from
Golder, UEX plans to initiate the environmental assessment ("EA") process with
the appropriate government agencies on both provincial and federal levels. The
first step in the provincial EA process is to provide a Project Proposal to
the Saskatchewan EA Branch that details the project description (e.g., mine
plan, mining method, water and waste management), current environmental
conditions, proposed measures to mitigate environmental issues, and residual
effects from the project. After review of this document, the EA Branch will
decide if the project meets the definition of a "development", in which case,
an Environmental Impact Statement ("EIS") will be required and various
provincial and federal responsible authorities will be identified to take part
in the review of the EIS. The Strategic Planning Group will also initiate the
community and public consultation process in 2008.
The information in this document has been compiled and reviewed by Sierd
Eriks, P. Geo., a qualified person as defined by National Instrument 43-101.
About West Bear
West Bear uranium mineralization occurs at a vertical depth of between 10
and 31 metres (or approximately 33 to 100 feet) from surface and is one of the
shallowest, undeveloped uranium deposits in the prolific Athabasca Basin.
Combined with the relatively soft nature of the host rocks and overburden, UEX
believes that the deposit could be mined using low cost, open pit techniques
within a very short timeframe. The deposit is located close to two existing
uranium mills, Cameco Corporation's Rabbit Lake Mill and the McClean Lake
Mill, operated by AREVA Resources Canada Inc. ("AREVA"). UEX believes that at
current uranium prices, the West Bear Deposit could become a viable source of
future cash flow.
About UEX
UEX is a Canadian uranium exploration and development company actively
involved in 19 uranium projects, including seven that are 100% owned and
operated by UEX, one joint venture with AREVA Resources Canada Inc. ("AREVA")
that is operated by UEX, ten under option from AREVA and one under option from
Japan-Canada Uranium Company, Limited, which are operated by AREVA. The 19
projects, totaling 386,650 hectares (955,400 acres), are located in the
eastern, western and northern perimeters of the Athabasca Basin, the world's
richest uranium belt, which accounts for approximately 25% of the global
primary uranium production. UEX is currently developing several uranium
deposits in the Athabasca Basin which include the Anne, Kianna and Colette
Deposits at its Shea Creek Uranium Project, a joint venture with AREVA in the
western Athabasca Basin, and the West Bear, Raven and Horseshoe Deposits
located at its 100% owned Hidden Bay Project in the eastern Athabasca Basin.
UEX's exploration and development budgets for 2007 total $30.0 million, and
the Company has a cash position of approximately $52.5 million.
ON BEHALF OF THE BOARD OF DIRECTORS OF UEX CORPORATION
Stephen H. Sorensen,
President & C.E.O.
Forward-Looking Statements
This news release contains "forward-looking statements" that are based on
UEX's current expectations, estimates, forecasts and projections. These
forward-looking statements include statements regarding UEX's outlook for our
future operations, plans and timing for the commencement or advancement of
exploration activities on our properties, and other expectations, intention
and plans that are not historical fact. The words "estimates", "projects",
"expects", "intends", "believes", "plans", or their negatives or other
comparable words and phrases are intended to identify forward-looking
statements. Such forward-looking statements are subject to risks,
uncertainties and other factors that could cause actual results to differ
materially from future results expressed or implied by such forward-looking
statements. Many of these factors are beyond the control of UEX. Consequently,
all forward-looking statements made in this news release are qualified by this
cautionary statement and there can be no assurance that actual results or
developments anticipated by UEX will be realized. For the reasons set forth
above, investors should not place undue reliance on such forward-looking
statements. UEX disclaims any intention or obligation to update or revise
forward-looking information, whether as a result of new information, future
events or otherwise.
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